PILLAR: Vibrant
AGENDA DATE: June 24, 2026
COUNCIL DISTRICT(S): 14
DEPARTMENT: Office of Housing and Community Empowerment
PRIORITY: N/A
______________________________________________________________________
SUBJECT
Title
(1) A public hearing to receive comments regarding an application by Fairfield Affordable Housing Fund Tranche XV LLC and/or its affiliate(s) (collectively referred to as Applicant), to the Texas Department of Housing and Community Affairs (TDHCA) for 4% Non-Competitive Low Income Housing Tax Credits for Hall Street Apartments, a 354-unit multifamily residential development for persons of low and moderate income to be located at 1823 North Hall Street, Dallas, Texas 75204 (Project); (2) pursuant to Section 394.9025 of the Texas Local Government Code regarding bonds to be issued by the City of Dallas Housing Finance Corporation to finance the Project; and (3) at the close of the public hearing authorize a Resolution of No Objection for Applicant, acknowledging the Project’s location within one linear mile of another development serving the same target population, which received a Housing Tax Credit allocation in the three-year period preceding the date the TDHCA application round began, related to its upcoming application to TDHCA for the development of the Project - Financing: This action has no cost consideration to the City (see Fiscal Information)
*In alignment with Dallas Housing Resource Catalog.
Body
BACKGROUND
Fairfield Affordable Housing Fund Tranche XV LLC a Texas limited liability company authorized to transact business in the state of Texas and/or its affiliate, submitted an application to the City of Dallas for a Resolution of No Objection (RONO) for its upcoming application to Texas Department of Housing and Community Affairs (TDHCA) for 2026 4% Non-Competitive Housing Tax Credits (4% Housing Tax Credits). The 4% Housing Tax Credits will be used for the development of Hall Street Apartments, a 354-unit complex located at 1823 North Hall Street, Dallas, Texas 75204 (Project).
Fairfield Hall Street LP has a certified Letter of Intent for a Real Estate Purchase Agreement for the Property between the current owner and the Applicant. TDHCA requires 4% Housing Tax Credit applicants to provide a RONO from the governing body of the jurisdiction in which the proposed development will be sited. As part of these TDHCA requirements, the governing body must also conduct a public hearing for citizens to provide comments on the proposed development. Once a resolution is adopted and submitted to TDHCA, it cannot be changed or withdrawn. This is located in City Council District 14.
The Project is located within one linear mile of another development serving the same target population, which received a Housing Tax Credit allocation in the three-year period preceding the date the TDHCA application round began. Pursuant to Tex. Gov’t. Code § 2306.6703(a) and 10 Tex. Admin. Code § 11.3(d), the City Council, as the governing body of the local government where the Project is to be located, must by vote to specifically allow the construction of the Project and authorize the allocation of Housing Tax Credits.
The Applicant proposes to develop the Project as a new construction multifamily rental development. A to-be-formed single asset entity or its affiliate with the Dallas Housing Finance Corporation (DHFC) as 100% owner, will be the general partner. The special limited partner will be a to-be-formed limited liability company (or its affiliate), which is 100% owned by a Texas limited liability company. An amended and restated agreement of limited partnership will be executed to admit the tax credit equity investor as investor member once identified. Pursuant to Texas Local Government Code § 394.9025, the City Council must hold a public hearing before the DHFC may issue bonds to finance the Project.
The new construction Project will include 354 units, all of which will be reserved for households earning at or below 60% of the Area Median Income (AMI). The unit mix includes 72 one-bedroom units, 181 two-bedroom units, and 101 three-bedroom units.
Resident Services:
All developments will offer the standard amenities and services required by TDHCA for all non-competitive LIHTC programs, including:
• Min. 12 hours/week organized on-site K-12 programming (e.g. tutoring, after school and summer care, etc.)
• Min. 4 hours/week organized onsite classes for adults (e.g., general education, English as a Second Language, financial literacy, etc.) Weekly financial literacy classes.
• Food pantry accessible to residents (on site or via on-request transportation).
• Annual health fair in addition, the community will provide free annual flu shots.
• Notary services for tenants.
• Min 2x/month arts, crafts, or other recreational activities (e.g., book club).
• Min 2x/month on-site social events (e.g., potlucks, holiday celebrations, etc.).
Additionally, the Applicant will work with the Office of Emergency Management and Crisis Response throughout the planning and design process for security input, community activities, and incorporate best practices of Crime Prevention through Environmental Design.
Unit Amenities:
Includes washer/dryer and ceiling fans. Additionally, the developer might include amenities seen in similar projects.
Total development costs are estimated to be approximately $136,446,234.00, which includes the acquisition price for the land. The construction budget is estimated to be approximately $69,030,000.00, which is $195,000.00 per unit.
|
Proposed Financing Sources |
Amount |
|
Permanent Financing |
$ 37,050,379.00 |
|
Fannie MTEB |
$ 39,500,000.00 |
|
LIHTC Equity |
$ 48,345,395.00 |
|
Deferred Developer Fee |
$ 11,550,461.00 |
|
Total |
$136,446,234.00 |
|
Proposed Uses |
Amount |
|
Land Acquisition |
$ 16,715,000.00 |
|
Hard Construction Costs |
$ 69,030,000.00 |
|
Soft Costs |
$ 9,252,626.00 |
|
Financing & Interest |
$ 24,006,908.00 |
|
Legal Fees |
$ 597,000.00 |
|
Reserves |
$ 2,406,624.00 |
|
Deferred Developer Fee |
$ 14,438,076.00 |
|
Total |
$136,446,234.00 |
This Project helps ensure that individuals and families from diverse backgrounds have access to a safe, quality, and affordable place to live while fostering inclusivity and creating a better quality of life, contributing to the overall growth of the area.
To receive a staff recommendation for a RONO, the Applicant must satisfy all threshold requirements and affirmatively further fair housing.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On April 12, 2023, the City Council adopted Dallas Housing Resource Catalog which has approved programs, including multifamily rental development projects seeking Low Income Housing Tax Credits (LIHTC) from the Texas Department of Housing and Community Affairs (TDHCA) by Resolution No. 23-0444.
On March 10, 2026, the Dallas Housing Finance Corporation authorized a preliminary inducement resolution declaring its intent to issue private activity bonds in an aggregate principal amount not to exceed $75,000,000.00 in private activity bonds to finance a loan to a limited liability company or a limited partnership formed by FRH Realty, LLC to provide financing for Hall Street Apartments and authorized the filing of an application for allocation of private activity bonds with the Texas Bond Review Board.
On April 22, 2026, the tax credit program was amended by Resolution No. 26-0742 which authorizes an amendment to the Dallas Housing Resource Catalog (DHRC).
The Housing and Homelessness Solutions Committee was briefed by memorandum regarding this matter on May 26, 2026. <https://cityofdallas.legistar.com/View.ashx?M=F&ID=15501105&GUID=5E2A174E-BA6F-4CD4-994F-6B53BB7CAFD6>
FISCAL INFORMATION
This action has no cost consideration to the City. Another item will come before the City Council for approval in the form of a Tax Equity and Fiscal Responsibility Act (TEFRA) hearing. The following is an estimate of the tax revenue the City of Dallas is projected to forgo. These projections are based on the current taxable value of the property. For DHFC projects, the values are calculated by DHFC staff at this time.
|
Actual Taxes |
|
Current Year |
Year 15 |
Year 30 |
|
$84,027.11 |
$1,562,812.98 |
$3,997,624.69 |
MAP
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